Kenya’s stock market opened the month of August on a confident note, with strong momentum carrying over from the second quarter as of August 1, 2025. Market capitalisation on the Nairobi Securities Exchange (NSE) reached approximately Ksh 2.42 trillion, reinforcing its status as a key regional financial hub.
The NSE All Share Index (NASI) has delivered returns exceeding 20 percent year‑to‑date, powered by gains in blue‑chip sectors such as telecommunications, banking, and consumer goods.
Safaricom remains the dominant force on the bourse, commanding nearly half of the total market value. By late June it had briefly surpassed Ksh 1 trillion in capitalisation, continuing to support overall investor wealth accumulation.
Banking stocks also posted strong gains, with Equity Group, KCB Group, Absa, Co‑operative Bank, NCBA, StanChart and I&M all solidly in the top ten by market value, each valued between roughly Ksh 58 billion and Ksh 184 billion.
Investor wealth surged by about Ksh 477 billion in the first half of 2025, bringing total investor holdings to over Ksh 2.417 trillion, the highest level since mid‑2022.
This marked a dramatic rebound from the lows of late 2023, when market value had dipped to Ksh 1.35 trillion, the rally now amounts to more than Ksh 1 trillion in gains over 18 months.
In a landmark market reform, the NSE announced that beginning August 8, 2025, it will allow trading in single‑share units, eliminating the previous 100‑share minimum threshold. This move is expected to significantly lower entry barriers and attract more retail investors into the market.
The Odd Lot Board will be phased out and only trades of 100 shares or more will count towards official closing price calculations.
Trading activity remains elevated but with some moderation. Market turnover surged earlier in 2025, with equity trading volumes and values up sharply from 2024 levels.
Hedge fund inflows strengthened liquidity, although foreign participation remains cautious with occasional net outflows.
Prominent stocks outside Safaricom also lifted investor sentiment. Telecom and banking giants posted double‑digit returns in the year so far, while firms such as Sameer Africa and Kapchorua Tea registered spectacular share rallies Sameer surged over 80 percent in recent weeks alone, driven by strong corporate performance and investor appetite.
Overall, as trading resumes on August 1, Nairobi bourse continues to reflect strong capital growth, widening investor participation and favourable reforms. With market capitalisation near Ksh 2.42 trillion, multi-index returns in the high teens to low 20 percent, and the introduction of single‑share trading around the corner, the NSE appears well‑positioned to embrace broader inclusion and maintain positive momentum into the second half of 2025.
Written By Ian Maleve
